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Human Resource Management
Chapter 13 Human Resource Management
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Planning Ahead — Chapter 13 Study Questions
What is human resource management? How do organizations attract a quality workforce? How do organizations develop a quality workforce? How do organizations maintain a quality workforce?
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Chapter 13 Learning Dashboard
Human Resource Management Human resource management process Strategic human resource management Legal environment of human resource management Attracting a Quality Workforce Human resource planning Recruiting techniques Selection techniques
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Chapter 13 Learning Dashboard
Developing a Quality Workforce Orientation and socialization Training and development Performance management Maintaining a Quality Workforce Flexibility and work-life balance Compensation and benefits Retention and turnover Labor-management relations
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Takeaway 1: Human resource management
Human capital is the economic value of people with job-relevant knowledge, abilities, ideas, energies, and commitments Human Resource Management is a process of attracting, developing, and maintaining a talented work force
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Takeaway 1: Human resource management
Major human resource management responsibilities: Attracting a quality workforce Human resource planning, recruitment, and selection Developing a quality workforce Employee orientation, training and development, and performance management Maintaining a quality workforce Career development, work-life balance, compensation and benefits, retention and turnover, and labor-management relations
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Takeaway 1: Human resource management
Person-job fit The individual’s skills, interests, and personal characteristics are consistent with the requirements of work Person-organization fit The individual’s values, interests, and behavior are consistent with the culture of the organization
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Takeaway 1: Human resource management
Strategic human resource management mobilizes human capital to implement organizational strategies Indicator that HRM is truly strategic: When it is headed by a senior executive reporting directly to the chief executive officer.
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Takeaway 1: Human resource management
Equal employment opportunity The right to employment without regard to race, color, national origin, religion, gender, age, or disability status Title VII of the Civil Rights Act of 1964 Equal Employment Opportunity Act of 1972 Civil Rights Act (EEOA) of 1991
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Takeaway 1: Human resource management
Affirmative action an effort to give preference in employment to women and minority group members, who have traditionally been underrepresented. Bona fide occupational qualifications employment criteria justified by capacity to perform a job
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Takeaway 1: Human resource management
Discrimination in employment Occurs when someone is denied a job or job assignment for reasons that are not job relevant
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Figure 13.1 A sample of U.S. laws against employment discrimination
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Takeaway 1: Human resource management
Current legal issues in HRM Sexual harassment Equal pay and comparable worth Legal status of independent contractors Workplace privacy
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Takeaway 2: Attracting a Quality Workforce
Human resource planning analyzes an organization’s staffing needs and determines how to best fill them
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Figure 13.2 Steps in strategic human resource planning
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Takeaway 2: Attracting a Quality Workforce
The foundation of human resource planning is job analysis the orderly study of job facets to determine what is done when, where, how, why, and by whom. Job analysis provides information for developing: Job descriptions Job specifications
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Takeaway 2: Attracting a Quality Workforce
Recruitment Activities designed to attract a qualified pool of job applicants to an organization Steps in the recruitment process: Advertisement of a job vacancy Preliminary contact with potential job candidates Initial screening to create a pool of qualified applicants
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Takeaway 2: Attracting a Quality Workforce
Recruitment External recruitment Candidates are sought from outside the hiring organization Internal recruitment Candidates are sought from within the organization Traditional recruitment Focuses on selling the job and organization to applicants Realistic job previews Candidates receive all pertinent information – both positive and negative
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Figure 13.3 Steps in the selection process: the case of a rejected job applicant
Choosing individuals to hire from a pool of qualified job applicants
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Takeaway 2: Attracting a Quality Workforce
Reliability means that a selection device gives consistent results time after time Validity means that there is a clear relationship between what the selection device measures and job performance
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Takeaway 2: Attracting a Quality Workforce
Interviews Unstructured interviews do not follow a formal and pre-established of questions Behavioral interviews ask job applicants about past behaviors that relate to the job Situational interviews ask job applicants how they would react in specific situations
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Takeaway 2: Attracting a Quality Workforce
Employment Tests Used to further screen applicants by gathering additional job-relevant information Assessment centers examine how job candidates handle simulated work situations Work sampling involves observing applicants performing actual work tasks
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Takeaway 2: Attracting a Quality Workforce
Employment Tests Biodata methods collect biographical information that has been proven to correlate with good job performance Value judgments Aspirations Motivations Attitudes Expectations
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Takeaway 3: Developing a Quality Workforce
Socialization a process of learning and adapting to the organizational culture Orientation familiarizes new employees with jobs, coworkers, and organizational policies and services
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Takeaway 3: Developing a Quality Workforce
Training Activities that provide the opportunity to acquire and improve job-related skills On-the-job training Job rotation Coaching Mentoring Off-the-job training Management development
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Takeaway 3: Developing a Quality Workforce
Performance management systems ensure that Performance standards and objectives are set Performance results are assessed regularly Actions are taken to improve future performance
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Takeaway 3: Developing a Quality Workforce
Performance appraisal Formally assessing someone’s work accomplishments and providing feedback Purposes of performance appraisal: Evaluation — lets people know where they stand relative to objectives and standards Development — assists in training and continued personal development of people
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Takeaway 3: Developing a Quality Workforce
Graphic rating scales A trait-based performance appraisal that includes checklists of traits or characteristics to evaluate performance Relatively quick and easy to use Questionable reliability and validity
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Takeaway 3: Developing a Quality Workforce
Behaviorally anchored rating scales (BARS) A behavior-based performance appraisal that describes actual behaviors that exemplify various levels of performance achievement in a job More reliable and valid than graphic rating scales Helpful in training people to master important job skills
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Figure 13.4 Sample behaviorally anchored rating scale for performance appraisal
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Takeaway 3: Developing a Quality Workforce
Recency bias is the tendency for evaluators to focus on recent behaviors instead of behavior that occurred throughout the evaluation period
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Takeaway 3: Developing a Quality Workforce
Critical-incident techniques Keeping a running log or inventory of effective and ineffective behaviors Documents success or failure patterns
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Takeaway 3: Developing a Quality Workforce
Results-based performance appraisals focus on accomplishments Usually qualitative and objective Determining what to measure may be difficult May create ethical problems
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Takeaway 3: Developing a Quality Workforce
Leniency error: the tendency for supervisors to rate employees more favorably than they deserve in order to avoid the unpleasant task of giving negative feedback Multiperson comparisons Formally compare one person’s performance with that of one or more others Types of multiperson comparisons: Rank ordering Forced distributions
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Takeaway 3: Developing a Quality Workforce
360° feedback Occurs when superiors, subordinates, peers, and even internal and even customers are involved in the appraisal of a jobholder’s performance
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Takeaway 4: Maintaining a Quality Workforce
Work-life balance How people balance career demands with personal and family needs Progressive employers support a healthy work-life balance
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Takeaway 4: Maintaining a Quality Workforce
Contemporary work-life balance issues: Single parent concerns Dual-career couples concerns Family-friendliness as screening criterion used by candidates
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Takeaway 4: Maintaining a Quality Workforce
Compensation and benefits Base compensation Salary or hourly wages Flexible benefits Employees can select a set of benefits within a certain dollar amount
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Takeaway 4: Maintaining a Quality Workforce
Merit pay Awards a pay increase in proportion to individual performance contributions Provides performance contingent reinforcement
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Takeaway 4: Maintaining a Quality Workforce
Bonus pay plans One-time payments based on the accomplishment of specific performance targets or some extraordinary contribution Profit-sharing plans Some or all employees receive a proportion of net profits earned by the organization Gain-sharing plans Groups of employees share in any savings realized through their efforts to reduce costs and increase productivity
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Takeaway 4: Maintaining a Quality Workforce
Employee stock ownership plans Employees purchase company stock directly through employer, sometimes at a discount Stock options Employees have the right to purchase company stock at a fixed price in the future as a performance incentive
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Takeaway 4: Maintaining a Quality Workforce
Benefits Non-monetary forms of compensation Required Social security Unemployment insurance Worker’s compensation Not required Health insurance Retirement plans Paid time off
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Takeaway 4: Maintaining a Quality Workforce
Flexible benefits Allow employees to choose from a set of benefits Family-friendly benefits Help in balancing work and nonwork responsibilities Employee assistance programs Help employees deal with troublesome personal problems
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Takeaway 4: Maintaining a Quality Workforce
Early retirement Financial incentive offered to employees who retire early Termination Involuntary dismissal of an employee Employment-at-will Employees can be terminated at any time for any reason Wrongful discharge Workers have legal protection from discriminatory firings
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Takeaway 4: Maintaining a Quality Workforce
Labor-management relations Labor unions deal with employers on the workers’ behalf A labor contract is a formal agreement between a union and an employer about the terms of work for union members Collective bargaining Process of negotiating, administering and interpreting a labor contract
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Takeaway 4: Maintaining a Quality Workforce
Labor contracts may determine Wages Work hours Work rules Seniority Hiring Grievances Other conditions of employment
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